SERVICE SECTOR / Anadime Corp. Announces Third Quarter Results
CALGARY, Nov. 16 /CNW/ - Anadime Corporation (TSE: AEM) today reported
revenues totalling $8.5 million for the nine months ending September 30, 1998,
as compared to revenues of $8.3 million for the nine months ending September
30, 1997. Net income for the nine months ending September 30, 1998 was
$89,603 or $0.002 per share, compared with $1,809,834 or $0.038 per share for
the nine-month period ending September 30, 1997.
Financial results for the nine months ended ($000)
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September 30 September 30
1998 1997
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Revenue 8,535 8,283
Earnings 90 1,810
Earnings per share (cents) 0.002 0.038
Cash flow from operations 965 2,804
Cash flow per share (cents) 0.018 0.058
EBITDA 1,374 3,050
Capital expenditures 5,623 7,042
Total shares outstanding (000s) 55,880 50,220
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The oil and gas sector continues to go through a very difficult period,
which is causing the industry to make some very tough decisions. Revenue and
earnings for the quarter and the nine months were both adversely impacted by
these poor industry conditions and the associated reduction in activity.
''Although we have redirected our Canadian focus from oil and heavy oil
related projects to gas related foothills projects, we do not expect to see
the benefit of this move until the fall of 1999.'' said Owen C. Pinnell,
President and CEO of Anadime. ''The current environment is difficult, and
Anadime continues to help its customers with new services that will lower
operating costs.''
Market Activity - Canada
During the third quarter the average rig count in Anadime's key Alberta
market area was 224 rigs, down from 440 rigs in the same quarter last year, a
drop of 45% in utilization rate. This drop in rig count is related to the
collapse in heavy and conventional oil well drilling activity, and it has
directly impacted the demand for E&P waste disposal services in these markets.
Although higher levels of gas-related rig utilization have been forecast for
the winter months, the market for the company's core NOW disposal services
will likely remain under pressure well into 1999.
Market Activity - California
During the third quarter, Anadime received its operating permits for the
Ventura NOW disposal facility. Although E&P activity in the Los Angeles basin
is low, the NOW disposal market remains active due primarily to the disposal
needs of large-scale offshore production platforms, and onshore abandonment
programs by major operators. In the Bakersfield area, the NOW disposal market
has been depressed by low oil prices. Business at the Company's Belridge NOW
disposal facility is expected to be steady however, due to the seasonal demand
for Class 1, non-hazardous industrial waste disposal and the planned addition
of slop oil processing capability at this location.
Based in Calgary, Anadime Corporation is an oilfield waste management
company operating in Canada and California. Additional information on Anadime
Corporation is available on the Internet at anadime.com.
The Toronto Stock Exchange has neither approved nor disapproved the
information contained herein. |
